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Wednesday, May 20, 2015

SKM EGG PRODUCTS -reported its March quarter and full year numbers today.For the three months ended March , Company reported a topline of Rs.66 Cr v/s Rs.69 Cr and a net profit of Rs.7.8 Vr v/s Rs.3.8 Cr ( including other income - standalone basis) . For FY 2014-15 , company's topline is Rs.290 Cr v/s Rs.264 Cr and net profit improved from Rs.7 Cr to Rs.23 Cr .Full year EPS is Rs.8.85 . A tad lower profit in last quarter was mainly due to increased expense for employee benefits and provision for depreciation as per new standards. Company declared a dividend of 10 % after a gap of 5 years. Company is expected to announce their plans to achieve targetted sales within 6-9 months . Though the overall result is not bad , due to mismatch with expectation and reality of investors , it already corrected more than 10 % . Long term investors can still hold it and I believe this industry will further consolidate in another few years and it will emerge as one of the very few players in India in this business going forward.

As long term investors we need not panic in a company like this at this valuation. Till last year , it was a company written off by market participants but now it made around Rs.24 Cr profit v/s Rs.7 Cr which is not a small thing.. We can see many company's reporting doubled or trippled profits in bull market through window dressing . Here the money is genuine and using that they re- paid debt even before due date and now giving dividend . As Warren Buffet said “You only find out who is swimming naked when the tide goes out.” . I am happy to hold this for long term considering various positive factors which I expected to unfold in next few years.

Sir because of hotel division losing 8 cr loss per year why they can't leave that hotelOr do u feel by saying hotel name is management eating that much amount I can't believe only one hotel losing that much amountThank u

Dear VPji.. I have one query regarding IL& fs engineering. IRB Infrastructure Developers Limited business is also in the similar line of IL&FS. IRB profit margin is in the range of 45%~55%. No other listed player has this kind of exceptional profit margin; Even L&T is in the range of 15%~17%. Is this kind of margin possible by IL&FS in future?? What is the reason behind this.?? is it real??

Hi VP Sir , In pioneer results the exception loss is shown from past few years. Is it something they are doubtful to receive the money from the customers? In 2011 & 2012 seems to be money got received but then on it is negative. Is it something that is common to this business or one need to watch out for? Please advise